Nifty recoups from early losses to end in green

Nifty ended near intraday high point on Wednesday, on the back of buying activity in the last leg of the trade. After getting a weak start, Indian benchmark traded slightly higher in early morning trade, as India’s services sector activity returned to growth in the month of November. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index bounced back to 52.7 in November from 49.2 in October.  However, wheel once again turned and index started declining, amid a private report that India’s GDP growth estimate to 5.3% from 6% amid a rash of similar actions, especially after the September quarter growth slowed to a 26-quarter low of 4.5%.

The local index continued lackluster trade to touch intraday low point in noon deals, as corporation tax collection contracted by 1% in April-November 2019 compared with the same period last year, amid a slowing economy, even as the impact of the corporation tax rate cuts, announced in September, is yet to reflect in the numbers. However, market bounced back from its losses in dying hour of trade to touch intraday high point, as traders took some solace with Commerce Minister Piyush Goyal’s statement that the FDI inflow into India has increased in the last fiscal in comparison to previous years with $62 billion foreign investments in 2018-19. In 2017-18, the total FDI inflow was $60.97 billion.

All the NSE sectoral indices ended in green. The top gainers from the F&O segment Dish TV India, Vodafone Idea and Tata Motors. On the other hand, the top losers were Torrent Pharmaceuticals, Godrej Consumer Products and Max Financial Services. In the index option segment, maximum OI continues to be seen in the 12200 - 12,700 calls and 11,700 - 12,200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 8.52% and reached 13.32.The 50 share Nifty was up by 49.00 points or 0.41% to settle at 12,043.20.

Nifty December 2019 futures closed at 12092.50 (LTP) on Wednesday, at a premium of 49.30 points over spot closing of 12043.20, while Nifty January 2019 futures ended at 12135.00 (LTP), at a premium of 91.80 points over spot closing. Nifty December futures saw an addition of 0.37 million (mn) units, taking the total outstanding open interest (OI) to 14.04 mn units. The near month derivatives contract will expire on December 26, 2019 (Provisional).

From the most active contracts, Indiabulls Housing Finance December 2019 futures traded at a premium of 0.40 points at 286.95 (LTP) compared with spot closing of 286.55. The numbers of contracts traded were 44,368 (Provisional).

ICICI Bank December 2019 futures traded at a premium of 0.30 points at 529.10 (LTP) compared with spot closing of 528.80. The numbers of contracts traded were 42,753 (Provisional).

Yes Bank December 2019 futures traded at a discount of 1.70 points at 61.30(LTP) compared with spot closing of 63.00. The numbers of contracts traded were 42,113 (Provisional).

Tata Steel December 2019 futures traded at a premium of 2.20 points at 412.10 (LTP) compared with spot closing of 409.90. The numbers of contracts traded were 31,494 (Provisional).

Reliance Industries December 2019 futures traded at a premium of 8.60 points at 1563.10 (LTP) compared with spot closing of 1554.50. The numbers of contracts traded were 30,565 (Provisional).

Among, Nifty calls, 12100 SP from the December month expiry was the most active call with a contraction of 0.003 million open interests. Among Nifty puts, 12000 from the December month expiry was the most active put with an addition of 0.001 units open interests. The maximum OI outstanding for Calls was at 12500 SP (18.82 mn) and that for Puts was at 12000 SP (31.87 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,086.83 -- Pivot Point 12,011.07 -- Support -- 11,967.43.

The Nifty Put Call Ratio (PCR) finally stood at 1.17 for December month contract. The top five scrips with highest PCR on Shree Cement (1.50), Shriram Transport Finance Company (1.26), Just Dial (1.11), UltraTech Cement (1.02) and Oil India (0.95).

Among most active underlying, Reliance Industries witnessed an addition of 2.41 million units of Open Interest in the December month futures contract, followed by ICICI Bank witnessing an addition of 4.98 million units of Open Interest in the December month contract, State Bank of India witnessed an addition of 3.85 million units of Open Interest in the December month contract, Tata Steel witnessed an addition of 1.80 million units of Open Interest in the December month contract and Larsen & Toubro witnessed an addition of 2.77 million units of Open Interest in the December month future contract (Provisional).